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Management - Essay Example

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Summary to essay on topic "Management"
International market entry requires careful planning and additional financial resources to penetrate a new country and new marled. The company selected for analysis is Laura Ashley, a UK based retailer. Geographical diversification is the response of many retailers to compensate for the loss in market share…
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Download file "Management" to see previous pages... Thus, small manufacturing plants can offer the same manufacturing capability and flexibility previously available only to large plants. Just as many researchers in strategic management emphasize that the formulation of an effective corporate strategy can only lead to the realization of a successful corporate strategy if the implementation is successful,
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the managers agree that venture success is critically dependent on implementation: a poor venture concept can sometimes be rescued by good management but a good venture concept will not rescue poor management. Management teams that can work in a complementary fashion toward achieving the overall objective are more likely to succeed than those composed of individuals with different objectives and/or only a limited ability to work together. Management teams with a uniform orientation toward opportunity rather than resource control are more likely to be successful than management teams oriented toward control and/or management of acquired resources (Ashley Home Page 2008).
IF a company has no financial resources to invest in new subsidy, it can use banking services to expend internationally. The bank can grand the company a loan or invest in its international expansion. .A prospective company approaches a bank with an idea for expanding a business. The lending institution evaluates it, and should the proposed idea be deemed viable, two practical questions are addressed: how to set up the business so that it will function well in a particular environment; how to make the business successful within a very short time span, of perhaps months, or even weeks (Ashley Home Page 2008). In UK, before agreeing to a loan, creditors would expect to see credit references; perhaps draw a report, or get a bank referral. Starting even the simplest manufacturing operation requires realistic evaluations of both the potential market and the kinds and amounts of support that are necessary. Market niches can usually be identified readily in both geographic and need terms, because villages or barrios have natural geographic boundaries, basic unmet needs, and lack of suppliers (Kotler and Keller 2005). As for support, the needs of the total operation must be evaluated clearly and realistically, which potential entrepreneurs often fail to do. Ventures with long planned periods until positive cash flow are found to be too risky investments to be made with a new management team. The company and banks associate a prior degree of understanding and a common set of objectives with regard to the business as the most important prior predictors of whether a management team will cooperate.

Question 3
Laura Ashley is a global company with vertical integration and centralized management. Global retailers address consumer groups who, independent of their home country, have similar lifestyles and expectations. Technology has fostered increasingly interlinked customer cultures and lifestyles. Ashley now owns 540 stores in 28 countries. More than 50% of its sales are generated outside of the United Kingdom. The main barriers to trade were in Chili, south America. The main barriers were caused by inadequate legal framework and corruption, cultural differences and low income. The quality of administrators becomes vital here, as in the rest of the development process, especially since the Latin American ...Download file "Management" to see next pagesRead More
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